KUALA LUMPUR (Aug 30): Renewable energy player Sunview Group Bhd has planned a private placement to raise an estimated RM39.31 million to fund its engineering, procurement, construction and commissioning (EPCC) projects.
The placement entails the issuance of up to 46.8 million new shares — representing 10% of Sunview’s issued shares — to independent investors at an issue price to be determined later, the group said in a filing with Bursa Malaysia on Wednesday.
The group said the assumed price of 84 sen represents a discount of 9.87% to the five-day volume weighted average market price of Sunview’s shares up to the latest practicable date of 93.20 sen.
Sunview said it intends to continue to invest in additional solar photovoltaic (PV) plants and increase installed capacity to further strengthen the group’s recurring revenues. “The group will continue to leverage on its core competency and experience in providing end-to-end services for potential solar PV projects,” it added.
The private placement is expected to be completed in the fourth quarter of 2023.
Sunview’s wholly-owned units, Fabulous Sunview Sdn Bhd and Solarcity REIT Sdn Bhd, have been selected as solar power producers under the Corporate Green Power Programme (CGPP).
Solarcity REIT has been allocated an export capacity of 29.99MWac, while Fabulous Sunview, through a consortium with JAKS Solar Power Sdn Bhd and Ann Joo Green Energy Sdn Bhd, has also been allocated with an export capacity of 29.99MWac.
1Q net profit up 10%
Separately, Sunview said net profit for its first quarter ended June 30, 2023 (1QFY2024) increased 9.85% to RM1.99 million from RM1.8 million a year ago. Revenue surged more than three times to RM108.72 million from RM31.5 million, mainly attributed to the recognition of the progress of construction works for large-scale solar 4 (LSS4) projects.
The group’s profit before tax decreased to RM2.22 million from RM2.34 million, due to the composition of current year projects, which generally have a lower gross profit margin due to competitive power purchase agreement tariffs offered to its clients.
As at end June, Sunview’s unbilled orderbook stood at RM472.71 million, which will provide the group with financial visibility in the next coming year.
At Wednesday’s closing bell, Sunview’s share price was two sen or 2.21% lower at 88.5 sen. This values the ACE-Market listed group at RM411.85 million. The counter has risen over 63% year-to-date.